Former Palace Capital CEO Neil Sinclair’s new venture has agreed a deal to acquire a portfolio of regional office assets for £20m.
Pristine Capital, which specialises in identifying and acquiring undervalued real estate assets, has signed non-binding heads of terms to purchase three income generating office properties let to “high quality” tenants.
The directors of Pristine Capital believe the deal, which will be structured via the acquisition of three private companies which own the assets from a privately held offshore group, would support a dividend yield for the company’s shareholders of no less than 8%.
The acquisition is expected to be financed through a mixture of equity and debt secured on the portfolio and a term sheet for a three-year credit committee approved debt facility has been signed.
The deal will be accompanied by a fundraise via an issue of new ordinary shares by the company to pay the cash consideration for the proposed acquisition.
Due to the anticipated market capitalisation of Pristine Capital, it is intended that the company will cancel the listing of its shares on the main market of the London Stock Exchange and seek admission of its shares for trading on AIM.
